Dell Technologies Reports Record Q2 FY2027 Results as AI Demand Drives Growth
Dell Technologies (NYSE: DELL) has announced record financial results for the second quarter of fiscal 2027, highlighting strong demand across its infrastructure, artificial intelligence (AI), server, storage, and client solutions businesses.
The company reported significant year-over-year growth during the quarter, driven in large part by accelerating customer investment in AI infrastructure. Dell also raised its outlook for fiscal 2027, reflecting continued momentum across its portfolio and growing demand for technologies that support AI workloads and digital transformation.
Record Second-Quarter Performance
Dell Technologies generated record revenue of $47.0 billion during the second quarter, representing a 58% increase year over year. The company also reported record earnings, with diluted earnings per share (EPS) reaching $6.34, up 273% from the same period a year earlier.
On a non-GAAP basis, diluted EPS reached a record $7.04, representing a 203% year-over-year increase. Dell also generated $2.2 billion in cash flow from operations, demonstrating the strength of its operating performance and ability to convert growth into cash.
The company returned a record $4.3 billion to shareholders during the quarter, further highlighting its strong financial position and commitment to shareholder returns.
Dell’s performance reflects a broader shift in enterprise technology spending, as organizations increasingly view IT infrastructure as a strategic investment rather than simply an operational expense.
“IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly – creating opportunity across our portfolio,” said Jeff Clarke, vice chairman and chief operating officer at Dell Technologies.
Clarke highlighted AI infrastructure as one of the strongest areas of momentum for the company. During the quarter, Dell booked a record $60.9 billion in AI server orders, recognized $16.4 billion in AI server revenue, and ended the quarter with a record $95 billion backlog.
The company also experienced strong growth beyond AI servers. Traditional servers and networking revenue increased 122% year over year, storage revenue rose 26%, and client solutions revenue grew 20%.
“Our second quarter results underscore the compounding benefits of our competitive advantages, the breadth of our portfolio and the strength of our operating model,” Clarke said.
Full-Year Outlook Raised
Based on the strength of its second-quarter results and the continued acceleration of AI demand, Dell Technologies has increased its fiscal 2027 outlook.
The company now expects full-year FY2027 revenue of $192.0 billion, representing a 69% increase from the previous year. Dell also expects full-year diluted EPS of $24.37, while non-GAAP diluted EPS is projected at $25.50.
Those figures represent year-over-year increases of 181% and 148%, respectively.
Dell’s decision to raise its full-year revenue outlook by $25 billion reflects growing confidence in the strength and sustainability of customer demand across its infrastructure and technology portfolio.
“In our second quarter, we delivered record revenue of $47 billion, record EPS and a record $4.3 billion returned to shareholders,” said David Kennedy, chief financial officer of Dell Technologies.
“Our advantages reinforce one another, and throughout the quarter we used these strengths to drive growth, share gains, profitability and cash generation. With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year,” Kennedy added.
Infrastructure Solutions Group Leads Growth
Dell’s Infrastructure Solutions Group (ISG) was a major contributor to the company’s record performance.
ISG generated record revenue of $31.8 billion, an increase of 89% compared with the prior-year quarter. The results reflect strong demand for AI-optimized computing infrastructure as businesses and organizations expand their AI capabilities.
Revenue from Dell’s AI-optimized servers reached a record $16.4 billion, doubling year over year. The growth underscores the rapid expansion of enterprise and large-scale AI deployments and the increasing demand for high-performance infrastructure capable of supporting complex AI workloads.
Dell’s traditional servers and networking business also delivered exceptional growth. Revenue reached a record $10.5 billion, representing a 122% year-over-year increase.
The company’s storage business continued to expand as well, with second-quarter storage revenue reaching a record $4.9 billion, up 26% year over year. The growth demonstrates continued customer demand for data storage infrastructure as organizations generate and manage increasingly large volumes of data.
ISG operating income reached a record $4.8 billion, an increase of 225% compared with the same quarter last year. The combination of strong revenue growth and increased operating income demonstrates the scale and profitability Dell is achieving in its infrastructure business.
Client Solutions Group Delivers Broad-Based Growth
Dell’s Client Solutions Group (CSG) also contributed meaningfully to the company’s overall performance.
CSG generated $15.0 billion in revenue, representing a 20% increase year over year. Commercial customers remained the primary driver of growth, with record commercial client revenue reaching $13.2 billion, up 22% from the prior-year period.
The commercial performance reflects continued demand from businesses upgrading their technology environments and investing in devices and computing solutions capable of supporting modern workloads, including AI-enabled applications.
Dell’s consumer business also recorded growth during the quarter. Consumer revenue reached $1.8 billion, an increase of 7% year over year.
CSG operating income totaled $1.1 billion, up 42% year over year. The increase demonstrates the group’s ability to generate profitable growth while maintaining strong demand across both commercial and consumer segments.
AI Emerges as a Major Growth Engine
Dell’s second-quarter results reinforce the growing importance of AI to enterprise technology investment. The company’s record AI server orders, revenue, and backlog indicate that customers are continuing to accelerate spending on infrastructure required to develop and deploy AI applications.
At the same time, Dell’s growth across traditional servers, networking, storage, and client solutions suggests that AI investment is creating opportunities across a much broader technology ecosystem.
Organizations deploying AI require not only specialized computing resources but also networking, storage, data management, endpoint devices, and supporting infrastructure. Dell’s broad portfolio positions the company to participate in multiple stages of this technology investment cycle.
The company’s record results therefore reflect both the immediate demand for AI infrastructure and the broader technology spending associated with organizations modernizing their IT environments.
Strong Momentum Heading into the Second Half
Dell Technologies enters the remainder of fiscal 2027 with strong momentum across its core businesses. Record revenue, profitability, cash generation, shareholder returns, and AI infrastructure demand have strengthened the company’s financial outlook.
With its full-year revenue forecast now increased to $192 billion, Dell expects the continued expansion of AI workloads and broader technology modernization to support further growth.
The second-quarter results demonstrate how rapidly enterprise technology spending is evolving as organizations prioritize AI and increasingly view infrastructure as a strategic driver of business growth.
For Dell, the combination of strong AI demand, growth across infrastructure businesses, resilient client solutions performance, and a broad technology portfolio provides a foundation for continued expansion through fiscal 2027.
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